GOL's Net Revenue Increases 42.5% in 4Q07

SAO PAULO, Brazil, Feb. 15 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), the parent company of Brazilian airlines GOL Transportes Aereos S.A. ("GTA", which operates the GOL brand) and VRG Linhas Aereas S.A. ("VRG", which operates the VARIG brand), reported consolidated net revenue of R$1.4bn for the fourth quarter of 2007 (4Q07), representing growth of 42.5% compared to the same period last year. Ancillary revenues (cargo and other) increased 47.4% over 4Q06 to R$85.5mm. Consolidated results for the quarter include those of VRG since April 9, 2007. Financial and operational information are presented in US GAAP.

Net income for the quarter, excluding VRG, was R$90.2mm (US$50.7mm), representing a 7.1% net margin. Consolidated net loss for the quarter was R$24.2mm (US$ 13.6mm), due to the incorporation of VRG's results and domestic operational restrictions, which resulted in lower load factors and increased ground times. Reported full-year 2007 net income was R$102.5mm (US$52.6mm) on revenues of R$4.9bn, representing a net margin of 2.1%.

"The fact that VRG was acquired during a difficult year for the aviation industry proves we are ready and prepared to manage growth despite adversity, not allowing occasional setbacks to divert our strategic plan for long-term growth," says Constantino de Oliveira Junior, GOL's president and CEO.

The Company invested approximately R$2.2bn during 2007 in the acquisition of VRG, fleet expansion, training, maintenance, and the GOL and VARIG brands, in addition to investments in technology for information systems that support operations. The Company's net cash position on December 31, 2007, was R$1.4bn.

Additionally, at the end of 2007 the Company announced the expansion of its fleet renovation plan and signed a new contract for the acquisition of 40 new airplanes for delivery between 2012 and 2014. The Company plans to end 2008 with a consolidated fleet of 111 aircraft. The fleet modernization and renewal plan includes replacing all 737-300s with Next Generation models in 2008, which will reduce the fleet's average age and fuel consumption while also improving productivity.

GOL implemented a new support system for operations composed of management systems for the engineering and aircraft maintenance departments, and other systems dedicated to crew management and operational controls. In addition, redesigned and internalized call center operations. These changes resulted in the addition of approximately 1,000 new employees but led to a significant reduction in costs and improved customer service for clients.

Approximately 6.6mm passengers were transported in the quarter, representing growth of 40.1% over 4Q06. Consolidated RPKs increased 59.3% from 4,123mm in 4Q06 to 6,567mm in 4Q07 and ASKs increased 59.9% from 6,070mm in 4Q06 to 9,705mm in 4Q07. Consolidated average load factor remained stable at 68% versus 4Q06. GTA's RPKs increased 33.8% from 4,123mm in 4Q06 to 5,516mm in 4Q07 and ASKs increased 27% from 6,070mm in 4Q06 to 7,707mm in 4Q07. GTA's average load factor increased 3.7 percentage points to 71.6%. VRG's RPKs and ASKs in 4Q07 were 1,051mm and 1,998mm, respectively; average load factor was 52.6%.

"Despite the difficulties faced by the aviation industry in 2007, the Brazilian domestic airline sector registered growth of 11.2% in 2007. GTA once again outperformed the domestic industry, growing by nearly 30.0%," adds de Oliveira.

The 59.9% year-over-year capacity expansion, measured by ASKs, facilitated the addition of 40 new daily flight frequencies for GTA in 4Q07 and 26 new daily flight frequencies for VRG. In total, GTA and VRG now serve 66 different destinations, the most of any Brazilian airline group.

GTA's average market share of domestic and international regular air transportation in 4Q07 was 41.6% and 11.9%, respectively. VRG's average market share of domestic and international regular air transportation in 4Q07 was 3% and 15.5%, respectively.

Sales through the GTA website represented 78.9% of total GTA sales. Since its re-launch on October 23, 2007, VRG's e-commerce website has accounted for 12.3% of total VRG sales -- versus 2% pre-launch.

The full presentation of GOL Linhas Aereas Inteligentes' 4Q07 results is available on the Company's investor relations website, www.voegol.com.br/ir.